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Receiver appointed over the assets of Prospera Mortgage, Prosperity Development and Prospera Management

CALGARY, Oct. 4, 2016 /CNW/ - The Alberta Securities Commission (ASC) has obtained an Order from the Court of Queen's Bench, appointing a receiver over the assets of Prospera Mortgage Investment Corporation (PMIC), Prosperity Development Group Ltd. (PDGL) and Prospera Management Corp.

The ASC found in a decision released on August 11, 2016, that Saileshwar Rao Narayan (Narayan) had used the corporations to raise over $5.8 million from investors. Narayan and each of the corporations admitted to perpetrating a fraud on investors prior to the sanction decision.

During the course of its investigation, the ASC issued freeze orders for four accounts belonging to the three corporations, resulting in the preservation of about $1.5 million of funds belonging to PDGL and $245,000 belonging to PMIC. The court-appointed receiver, MNP LTD, will take control of the funds and will proceed with a court-approved plan for a fair distribution of net assets held by the receiver.

"In granting the Order, the Justice noted the significant public interest in this matter and the importance of ensuring the receivership is carried out in the best interests of the investors," says Alberta Securities Commission Director, Enforcement Cynthia Campbell." We are pleased that investors now have the opportunity to claim a portion of the frozen assets."

Further information regarding the claim process will be available on the receiver's website: http://mnpdebt.ca/prosperity in due course. MNP will take all steps required by the Court to ensure that investors have a reasonable opportunity to submit their claims for a share of the net assets of the corporations.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.